Bill Text: NY A06578 | 2015-2016 | General Assembly | Introduced
Bill Title: Provides for pollution tax credits for the purchase of certain machinery or equipment for the reduction of pollution made by dry cleaning businesses.
Spectrum: Strong Partisan Bill (Democrat 14-1)
Status: (Introduced - Dead) 2016-01-06 - referred to ways and means [A06578 Detail]
Download: New_York-2015-A06578-Introduced.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 6578 2015-2016 Regular Sessions I N A S S E M B L Y March 27, 2015 ___________ Introduced by M. of A. ENGLEBRIGHT, COLTON, CYMBROWITZ, SCHIMMINGER, ORTIZ, SCHIMEL -- Multi-Sponsored by -- M. of A. AUBRY, CLARK, COOK, DINOWITZ, GALEF, LENTOL, McDONOUGH, PERRY, RIVERA, ROBINSON -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to pollution tax credits for the purchase of certain equipment made by dry cleaning businesses THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. Subdivision (a) of section 1115 of the tax law is amended 2 by adding a new paragraph 44 to read as follows: 3 (44) EQUIPMENT OR MACHINERY CERTIFIED BY THE DEPARTMENT OF ENVIRON- 4 MENTAL CONSERVATION, PURSUANT TO REGULATIONS PROMULGATED BY SUCH DEPART- 5 MENT, FOR POLLUTION PREVENTION OR CONTROL WHICH, FOR PURPOSES OF THIS 6 PARAGRAPH, SHALL MEAN ANY PROCESS, FACILITY, DEVICE, FIXTURE, EQUIPMENT 7 OR MACHINERY USED PRIMARILY FOR THE CONTROL, PREVENTION OR ABATEMENT OF 8 POLLUTION OR CONTAMINANTS FROM THE OPERATION OF A DRY CLEANING PLANT, 9 INCLUDING ANY STRUCTURE, MACHINERY OR EQUIPMENT INSTALLED IN THE RECON- 10 STRUCTION OR REPLACEMENT OF SUCH PROCESS, FACILITY, DEVICE, FIXTURE, 11 EQUIPMENT OR MACHINERY. 12 S 2. Subparagraph (A) of paragraph 2 of subsection (a) of section 13 606 of the tax law, as amended by chapter 637 of the laws of 2008, is 14 amended to read as follows: 15 (A) A credit shall be allowed under this subsection with respect to 16 tangible personal property and other tangible property, including build- 17 ings and structural components of buildings, which are: depreciable 18 pursuant to section one hundred sixty-seven of the internal revenue 19 code, have a useful life of four years or more, are acquired by purchase 20 as defined in section one hundred seventy-nine (d) of the internal 21 revenue code, have a situs in this state and are (i) principally used by 22 the taxpayer in the production of goods by manufacturing, processing, 23 assembling, refining, mining, extracting, farming, agriculture, horti- EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD10122-01-5 A. 6578 2 1 culture, floriculture, viticulture or commercial fishing, (ii) indus- 2 trial waste treatment facilities or air pollution control facilities, 3 used in the taxpayer's trade or business OR BUSINESS INVESTMENTS MADE BY 4 DRY CLEANING BUSINESSES TO ACHIEVE POLLUTION PREVENTION INCLUDING 5 INVESTMENTS INTO CHANGES IN FACILITY PROCESSES OR OPERATIONS METHODS, 6 (iii) research and development property, (iv) principally used in the 7 ordinary course of the taxpayer's trade or business as a broker or deal- 8 er in connection with the purchase or sale (which shall include but not 9 be limited to the issuance, entering into, assumption, offset, assign- 10 ment, termination, or transfer) of stocks, bonds or other securities as 11 defined in section four hundred seventy-five (c)(2) of the Internal 12 Revenue Code, or of commodities as defined in section 475(e) of the 13 Internal Revenue Code, (v) principally used in the ordinary course of 14 the taxpayer's trade or business of providing investment advisory 15 services for a regulated investment company as defined in section eight 16 hundred fifty-one of the Internal Revenue Code, or lending, loan 17 arrangement or loan origination services to customers in connection with 18 the purchase or sale (which shall include but not be limited to the 19 issuance, entering into, assumption, offset, assignment, termination, or 20 transfer) of securities as defined in section four hundred seventy-five 21 (c)(2) of the Internal Revenue Code, or (vi) principally used as a qual- 22 ified film production facility including qualified film production 23 facilities having a situs in an empire zone designated as such pursuant 24 to article eighteen-B of the general municipal law, where the taxpayer 25 is providing three or more services to any qualified film production 26 company using the facility, including such services as a studio lighting 27 grid, lighting and grip equipment, multi-line phone service, broadband 28 information technology access, industrial scale electrical capacity, 29 food services, security services, and heating, ventilation and air 30 conditioning. For purposes of clauses (iv) and (v) of this subparagraph, 31 property purchased by a taxpayer affiliated with a regulated broker, 32 dealer, or registered investment adviser is allowed a credit under this 33 subsection if the property is used by its affiliated regulated broker, 34 dealer or registered investment adviser in accordance with this 35 subsection. For purposes of determining if the property is principally 36 used in qualifying uses, the uses by the taxpayer described in clauses 37 (iv) and (v) of this subparagraph may be aggregated. In addition, the 38 uses by the taxpayer, its affiliated regulated broker, dealer and regis- 39 tered investment adviser under either or both of those clauses may be 40 aggregated. Provided, however, a taxpayer shall not be allowed the cred- 41 it provided by clauses (iv) and (v) of this subparagraph unless (I) 42 eighty percent or more of the employees performing the administrative 43 and support functions resulting from or related to the qualifying uses 44 of such equipment are located in this state, or (II) the average number 45 of employees that perform the administrative and support functions 46 resulting from or related to the qualifying uses of such equipment and 47 are located in this state during the taxable year for which the credit 48 is claimed is equal to or greater than ninety-five percent of the aver- 49 age number of employees that perform these functions and are located in 50 this state during the thirty-six months immediately preceding the year 51 for which the credit is claimed, or (III) the number of employees 52 located in this state during the taxable year for which the credit is 53 claimed is equal to or greater than ninety percent of the number of 54 employees located in this state on December thirty-first, nineteen 55 hundred ninety-eight or, if the taxpayer was not a calendar year taxpay- 56 er in nineteen hundred ninety-eight, the last day of its first taxable A. 6578 3 1 year ending after December thirty-first, nineteen hundred ninety-eight. 2 If the taxpayer becomes subject to tax in this state after the taxable 3 year beginning in nineteen hundred ninety-eight, then the taxpayer is 4 not required to satisfy the employment test provided in the preceding 5 sentence of this subparagraph for its first taxable year. For the 6 purposes of clause (III) of this subparagraph the employment test will 7 be based on the number of employees located in this state on the last 8 day of the first taxable year the taxpayer is subject to tax in this 9 state. If the uses of the property must be aggregated to determine 10 whether the property is principally used in qualifying uses, then either 11 each affiliate using the property must satisfy this employment test or 12 this employment test must be satisfied through the aggregation of the 13 employees of the taxpayer, its affiliated regulated broker, dealer, and 14 registered investment adviser using the property. For purposes of this 15 subsection, the term "goods" shall not include electricity. 16 S 3. Subparagraph (B) of paragraph 2 of subsection (a) of section 606 17 of the tax law is amended by adding three new clauses (vi), (vii) and 18 (viii) to read as follows: 19 (VI) POLLUTION PREVENTION SHALL MEAN CHANGES IN PRODUCTION METHODS OR 20 RAW MATERIALS THAT REDUCE, AVOID OR ELIMINATE THE USE OF TOXIC OR 21 HAZARDOUS SUBSTANCES OR THE GENERATION OF SUCH SUBSTANCES OR POLLUTANTS 22 PER UNIT OF PRODUCT, SO AS TO REDUCE RISKS TO THE HEALTH OF WORKERS, 23 CONSUMERS OR THE ENVIRONMENT, WITHOUT SHIFTING RISKS BETWEEN WORKERS, 24 CONSUMERS OR ENVIRONMENTAL MEDIA. POLLUTION PREVENTION INCLUDES THE 25 REDESIGN, MODIFICATION, UPGRADE OR REPLACEMENT OF PRODUCTION PROCESSES, 26 EQUIPMENT OR TECHNOLOGY; REFORMULATION OR REDESIGN OF PRODUCTS, SUBSTI- 27 TUTION OF INPUTS OR RAW MATERIALS; IMPROVEMENTS IN HOUSEKEEPING, MAINTE- 28 NANCE, TRAINING OR INVENTORY CONTROL; AND EXTENDED USE OR REUSE OF MATE- 29 RIALS THROUGH METHODS INTEGRAL TO THE PRODUCTION PROCESS, SUCH AS 30 IN-PROCESS, CLOSED-LOOP RECYCLING. SUCH TERM DOES NOT INCLUDE INCINERA- 31 TION, TRANSFER FROM ONE MEDIUM OF RELEASE OR DISCHARGE TO ANOTHER MEDIA, 32 OFF-SITE OR OUT-OF-PRODUCTION RECYCLING, END-OF-PIPE TREATMENT OR 33 POLLUTION CONTROL. 34 (VII) POLLUTANT SHALL MEAN ANY SUBSTANCE, CONTAMINANT, WASTE OR EMIS- 35 SION WHICH CONTRIBUTES TO POLLUTION AS DEFINED IN ARTICLE ONE OF THE 36 ENVIRONMENTAL CONSERVATION LAW. 37 (VIII) TOXIC OR HAZARDOUS SUBSTANCE SHALL MEAN ANY SUBSTANCE LISTED AS 38 A SUBSTANCE HAZARDOUS TO PUBLIC HEALTH, SAFETY OR THE ENVIRONMENT IN 39 REGULATIONS PROMULGATED PURSUANT TO ARTICLE THIRTY-SEVEN OF THE ENVIRON- 40 MENTAL CONSERVATION LAW. 41 S 4. Subparagraph (i) of paragraph (b) of subdivision 1 of section 42 210-B of the tax law, as added by section 17 of part A of chapter 59 of 43 the laws of 2014, is amended to read as follows: 44 (i) A credit shall be allowed under this subdivision with respect to 45 tangible personal property and other tangible property, including build- 46 ings and structural components of buildings, which are: depreciable 47 pursuant to section one hundred sixty-seven of the internal revenue 48 code, have a useful life of four years or more, are acquired by purchase 49 as defined in section one hundred seventy-nine (d) of the internal 50 revenue code, have a situs in this state and are (A) principally used by 51 the taxpayer in the production of goods by manufacturing, processing, 52 assembling, refining, mining, extracting, farming, agriculture, horti- 53 culture, floriculture, viticulture or commercial fishing, (B) industrial 54 waste treatment facilities or air pollution control facilities, used in 55 the taxpayer's trade or business, (C) research and development property 56 OR BUSINESS INVESTMENTS MADE BY DRY CLEANING BUSINESSES TO ACHIEVE A. 6578 4 1 POLLUTION PREVENTION INCLUDING INVESTMENTS INTO CHANGES IN FACILITY 2 PROCESSES OR OPERATIONS OR PRODUCTION METHODS, or (D) principally used 3 in the ordinary course of the taxpayer's trade or business as a broker 4 or dealer in connection with the purchase or sale (which shall include 5 but not be limited to the issuance, entering into, assumption, offset, 6 assignment, termination, or transfer) of stocks, bonds or other securi- 7 ties as defined in section four hundred seventy-five (c)(2) of the 8 Internal Revenue Code, or of commodities as defined in section four 9 hundred seventy-five (e) of the Internal Revenue Code, (E) principally 10 used in the ordinary course of the taxpayer's trade or business of 11 providing investment advisory services for a regulated investment compa- 12 ny as defined in section eight hundred fifty-one of the Internal Revenue 13 Code, or lending, loan arrangement or loan origination services to 14 customers in connection with the purchase or sale (which shall include 15 but not be limited to the issuance, entering into, assumption, offset, 16 assignment, termination, or transfer) of securities as defined in 17 section four hundred seventy-five (c)(2) of the Internal Revenue Code, 18 (F) originally used in the ordinary course of the taxpayer's business as 19 an exchange registered as a national securities exchange within the 20 meaning of sections 3(a)(1) and 6(a) of the Securities Exchange Act of 21 1934 or a board of trade as defined in section 1410(a)(1) of the New 22 York Not-for-Profit Corporation Law or as an entity that is wholly owned 23 by one or more such national securities exchanges or boards of trade and 24 that provides automation or technical services thereto, or (G) princi- 25 pally used as a qualified film production facility including qualified 26 film production facilities having a situs in an empire zone designated 27 as such pursuant to article eighteen-B of the general municipal law, 28 where the taxpayer is providing three or more services to any qualified 29 film production company using the facility, including such services as a 30 studio lighting grid, lighting and grip equipment, multi-line phone 31 service, broadband information technology access, industrial scale elec- 32 trical capacity, food services, security services, and heating, venti- 33 lation and air conditioning. Provided, however, a taxpayer shall not be 34 allowed the credit provided by clauses (D), (E) and (F) of this subpara- 35 graph unless (i) eighty percent or more of the employees performing the 36 administrative and support functions resulting from or related to the 37 qualifying uses of such equipment are located in this state or (ii) the 38 average number of employees that perform the administrative and support 39 functions resulting from or related to the qualifying uses of such 40 equipment and are located in this state during the taxable year for 41 which the credit is claimed is equal to or greater than ninety-five 42 percent of the average number of employees that perform these functions 43 and are located in this state during the thirty-six months immediately 44 preceding the year for which the credit is claimed, or (iii) the number 45 of employees located in this state during the taxable year for which the 46 credit is claimed is equal to or greater than ninety percent of the 47 number of employees located in this state on December thirty-first, 48 nineteen hundred ninety-eight or, if the taxpayer was not a calendar 49 year taxpayer in nineteen hundred ninety-eight, the last day of its 50 first taxable year ending after December thirty-first, nineteen hundred 51 ninety-eight. If the taxpayer becomes subject to tax in this state after 52 the taxable year beginning in nineteen hundred ninety-eight, then the 53 taxpayer is not required to satisfy the employment test provided in the 54 preceding sentence of this subparagraph for its first taxable year. For 55 purposes of clause (iii) of this subparagraph the employment test will 56 be based on the number of employees located in this state on the last A. 6578 5 1 day of the first taxable year the taxpayer is subject to tax in this 2 state. If the uses of the property must be aggregated to determine 3 whether the property is principally used in qualifying uses, then either 4 each affiliate using the property must satisfy this employment test or 5 this employment test must be satisfied through the aggregation of the 6 employees of the taxpayer, its affiliated regulated broker, dealer, and 7 registered investment adviser using the property. For purposes of this 8 subdivision, the term "goods" shall not include electricity. 9 S 5. Subparagraph (ii) of paragraph (b) of subdivision 1 of section 10 210-B of the tax law is amended by adding three new clauses (F), (G) and 11 (H) to read as follows: 12 (F) POLLUTION PREVENTION SHALL MEAN CHANGES IN PRODUCTION METHODS OR 13 RAW MATERIALS THAT REDUCE, AVOID OR ELIMINATE THE USE OF TOXIC OR 14 HAZARDOUS SUBSTANCES OR THE GENERATION OF SUCH SUBSTANCES OR POLLUTANTS 15 PER UNIT OF PRODUCT, SO AS TO REDUCE RISKS TO THE HEALTH OF WORKERS, 16 CONSUMERS OR THE ENVIRONMENT, WITHOUT SHIFTING RISKS BETWEEN WORKERS, 17 CONSUMERS OR ENVIRONMENTAL MEDIA. POLLUTION PREVENTION INCLUDES THE 18 REDESIGN, MODIFICATION, UPGRADE OR REPLACEMENT OF PRODUCTION PROCESSES, 19 EQUIPMENT OR TECHNOLOGY; REFORMULATION OR REDESIGN OF PRODUCTS, SUBSTI- 20 TUTION OF INPUTS OR RAW MATERIALS; IMPROVEMENTS IN HOUSEKEEPING, MAINTE- 21 NANCE, TRAINING OR INVENTORY CONTROL; AND EXTENDED USE OR REUSE OF MATE- 22 RIALS THROUGH METHODS INTEGRAL TO THE PRODUCTION PROCESS, SUCH AS 23 IN-PROCESS, CLOSED-LOOP RECYCLING. SUCH TERM DOES NOT INCLUDE INCINERA- 24 TION, TRANSFER FROM ONE MEDIUM OF RELEASE OR DISCHARGE TO ANOTHER MEDIA, 25 OFF-SITE OR OUT-OF-PRODUCTION RECYCLING, END-OF-PIPE TREATMENT OR 26 POLLUTION CONTROL. 27 (G) POLLUTANT SHALL MEAN ANY SUBSTANCE, CONTAMINANT, WASTE OR EMISSION 28 WHICH CONTRIBUTES TO POLLUTION AS DEFINED IN ARTICLE ONE OF THE ENVIRON- 29 MENTAL CONSERVATION LAW. 30 (H) TOXIC OR HAZARDOUS SUBSTANCE SHALL MEAN ANY SUBSTANCE LISTED AS A 31 SUBSTANCE HAZARDOUS TO PUBLIC HEALTH, SAFETY OR THE ENVIRONMENT IN REGU- 32 LATIONS PROMULGATED PURSUANT TO ARTICLE THIRTY-SEVEN OF THE ENVIRON- 33 MENTAL CONSERVATION LAW. 34 S 6. This act shall take effect three years after it shall have become 35 a law and shall apply to taxable years ending on or after such effective 36 date, except that section one of this act shall take effect on the first 37 day of the sales tax quarterly period, as designated in subdivision (b) 38 of section 1136 of the tax law, next commencing on or after the effec- 39 tive date of this act and shall apply to sales made on or after the 40 effective date of section one of this act and shall apply to all equip- 41 ment or machinery purchased on or after such date although purchased 42 under a prior contract.